VAT records and Making Tax Digital
VAT records are kept digitally and the return is sent from software. Learn what must be recorded and what a digital link is.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
Task 1What Making Tax Digital asks for4 questions
Making Tax Digital for VAT is HMRC's set of rules for VAT records. A VAT registered business keeps its VAT records in software, unless HMRC has agreed that it is exempt.
The software sends the return to HMRC. The nine figures are not typed into a form on HMRC's website.
For each sale, the digital record holds the three things below. A purchase is recorded in the same way, with the input tax to be reclaimed.
- The time of supply, also called the tax point
- The value of the sale, excluding VAT
- The rate of VAT charged
Task 2Digital links2 questions
Task 3Keeping the records3 questions